McGuinty Government re-works energy agreement with Samsung

The following is a statement from Ontario Minister of Energy Brad Duguid: Today, we are announcing some important improvements to the agreement because our Samsung partners want the same one-year commercial operation date extension that was provided to all other Feed-In Tariff contract holders in February, 2011.

PHOTO CREDIT - OntarioLiberal.ca

Toronto - Aug. 3, 2011 - The following is a statement from Ontario Minister of Energy Brad Duguid:

In January, 2010 the McGuinty government and Samsung C&T Corporation and the Korea Electric Power Corporation announced an agreement to create 16,000 direct and indirect jobs in Ontario for Ontarians, bring four manufacturing plants to Ontario, inject $7 billion of investment into our economy and build 2,500 megawatts of clean wind and solar electricity.

Now, three manufacturing plants are getting ready for production in Windsor, Tillsonburg and Toronto.

Today, we are announcing some important improvements to the agreement because our Samsung partners want the same one-year commercial operation date extension that was provided to all other Feed-In Tariff contract holders in February, 2011.

In exchange for that one-year extension, Ontario gained significant improvements that make this an even better investment opportunity for Ontarians.

Under the revised agreement, the economic development payments to Samsung are reduced to a maximum of $110 million - down from a projected $437 million when the deal was first signed. That’s a 75 per cent reduction and will save Ontario ratepayers $327 million.

These payments will only begin after the manufacturing plants start operating, job commitments are met and the solar and wind projects begin producing clean energy. Should job levels fall or a plant close, payments will be reduced accordingly.

The revised agreement will also see all four clean-technology manufacturing plants open their doors one year earlier, solidifying Ontario's position as North America's leader in the manufacturing of wind turbines and solar panels.

The Samsung agreement is part of the McGuinty government's plan to secure the future. The agreement means thousands of new clean energy manufacturing jobs in Ontario for Ontarians and new renewable energy to power our homes and businesses. We are committed to protecting these jobs and the future of our clean energy industry.

Ontario is moving the economy forward - we're turning the corner and are back on track.